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Nucleus Insights : Drivers of Volatility

Agenda

1. Short Volatility

2. Radicalising White House

3. Bank Funding Spreads

4. China Slowing

5. Fundamentals / Valuation

David Llewellyn Smith

Tim Fuller

Damien Klassen

Short

Volatility

February Crash

David Llewellyn Smith

Tim Fuller

Damien Klassen

Short Volatility

Corporate Debt

Divergence

David Llewellyn Smith

Tim Fuller

Damien Klassen

White House- Wars

‘Dropping the bomb’

David Llewellyn Smith

Tim Fuller

Damien Klassen

White House -Trade Wars

‘Poking the dragon’

David Llewellyn Smith

Tim Fuller

Damien Klassen

Bank Funding

Spreads

3m Bank Bill Swap

David Llewellyn Smith

Tim Fuller

Damien Klassen

China

Slowing

Credit Growth

David Llewellyn Smith

Tim Fuller

Damien Klassen

Fundamentals /

Valuation

Earnings still improving

David Llewellyn Smith

Tim Fuller

Damien Klassen

Fundamentals /

Valuation

Earnings still improving

David Llewellyn Smith

Tim Fuller

Damien Klassen

Name World US Eurozone Europe x EZ Japan Australia Emerging

TOTALS 0.8% 0.4% 1.2% 0.9% 0.6% -0.1% 0.9%

Commercial Services 0.7% -0.2% 0.5% 1.1% 1.0% 0.5% 0.9%

Communications 0.2% -0.1% 1.1% -0.1% 0.7% -0.1% 0.2%

Consumer Durables 1.0% 0.4% 1.5% 1.8% 0.9% 1.3% 0.7%

Consumer Non-Durables 0.7% 0.4% 1.0% 1.5% 0.4% -0.3% 0.7%

Consumer Services 0.4% 0.4% -1.5% 1.7% 0.4% -0.1% 1.3%

Distribution Services 0.6% 0.3% 0.6% 1.2% 0.3% 0.0% -2.1%

Electronic Technology 0.8% 0.7% 2.0% -1.5% 0.8% 1.4% 0.6%

Energy Minerals 0.4% 0.0% 0.8% 0.5% 0.3% 0.7% 0.0%

Finance 1.0% 0.3% 1.1% 0.9% 0.5% -0.2% 0.7%

Health Services 1.0% 0.4% 6.1% 0.8% 0.4% -0.1% 1.9%

Health Technology 0.8% 0.4% 0.5% 0.5% 0.5% 0.8% 1.1%

Industrial Services 1.0% 0.5% 1.5% -1.6% 0.5% 0.8% 2.1%

Non-Energy Minerals 1.1% 2.2% 3.2% 2.0% 0.9% -0.6% 1.0%

Process Industries 0.7% 0.5% 0.8% 1.6% 0.6% -0.1% 0.6%

Producer Manufacturing 0.9% 0.5% 0.9% 0.4% 0.7% 0.4% 1.5%

Retail Trade 1.3% 0.9% 1.0% 1.3% 0.8% -0.2% 1.4%

Technology Services 0.6% 0.5% 1.4% 0.8% 0.1% -2.1% 1.2%

Transportation 1.3% 0.8% 1.1% 1.0% 0.1% -0.3% 2.9%

Utilities 0.2% 0.0% 1.6% -2.1% 0.4% 0.1% -0.5%

Change in 12m Forward Earnings: 1 Week

Fundamentals /

Valuation

Valuations a little above

average

David Llewellyn Smith

Tim Fuller

Damien Klassen

Investing with Nucleus

Wealth

Investing with Nucleus

Wealth

Investing with Nucleus

Wealth

• Complete investment solution

• 19 individual ethical screens

• Experienced investment managers

• Completely transparent

• Lower fees as we get rid of the multiple layers of middle-men between you and your money

• Tax effective

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